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Equipment was acquired for $208,000 and has accumulated depreciation of $87,000 . The business exchanges this equipment for new equipment. The new equipment has a
Equipment was acquired for $208,000 and has accumulated depreciation of $87,000. The business exchanges this equipment for new equipment. The new equipment has a market value of $309,000 and the business pays $59,000 cash. Assume the exchange has commercial substance. The exchange results in?
A. gain $188,000
B. loss $129,000
C. gain $129,000
D. loss $188,000
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